How you can earn profit from stock market ?

                    

Good morning friends

Many People ask this question or there is confusion in their mind that

Can we do stock trading without any course?

The earning profit or making profit from the stock market is not a easy task. It needs stock market skills, knowledge and experience. I will discuss few important steps with the help of these steps you can make profit in the stock market.

Basic Knowledge:  

Many people come into the stock market without basic knowledge. Even they had no idea that what is stock market?  Why companies are listed into the stocks exchanges? Why a investor should invest in a particular company ? If a investor will get answers of these few questions then he/she will make right entry into the stock market. I have discussed few of the steps in the learning section of my blog. Try to gain as much as knowledge of the stock market then start investing.

Research: 

Many people came into the stock market with the referral of relatives, friends & office mates. It is not good thing. Every investor will invest his/her hard earned money into the stock market so decision should be of a investor that whether his/her bank balance is giving permission to him/her for investment or not. If the answer is yes, then Start your own research. if you have no knowledge about the fundamental analysis or technical analysis then try to gain some knowledge. The other option is that you should start investment under the guidance of experts of the stock market. 

Avoid Day trading: 

If you want to earn money as a investor from stock market then avoid day trading or Intraday  trading in the beginning. Once you will gain the experience in the stock market and you will feel comfortable then you may start it but still it is advisable that start under the guidance of experts.

Avoid Over confidence:  

The confidence in the stock market is not bad but the over confidence is really very dangerous. Few people come into the market and earn some profit for couple of days then they start double their amount of investment or trading. it is very risky because every day in the stock market is not yours day. Keep this thing into your mind always that Stock market is a king & you should never try to beat the market.

Points to be noted:

A stock exchange bubble shapes consistently and quietly. As the costs tenderly beginning taking off, continuously individuals start to find out about the rising costs and begin putting in the wake of getting attracted by the crowd impact. Market experts and media further spread the publicity making the costs soar. And afterwards after the stocks have almost multiplied in esteem, the savvy cash begins selling. This is the point at which the financial backers also should quit being excessively covetous and sell their quantity of stocks and bring home the benefit rate. They ought not be moved by the market feelings and entranced by the market specialists blazing appealing figures and graphs showing brilliant future guarantees of additional increase. They should auction before the frenzy selling starts which pulls down the costs to wretched profundities making limitless misfortunes millions.

 At the point when the securities exchange sees significant gains constantly for quite a while they give marvellous purchasing freedoms to normal financial backers. With the constant vertical pattern the conviction develops that on the off chance that one purchases an expanded assortment of good stocks one essentially can't lose. In actuality, the industriousness and the persistent development give such certain indications that it attracts multitudinous new players to the market. Individuals from practically every one of the different backgrounds have begun dedicating an impressive piece of their day by day an ideal opportunity to exchanging on the Internet with fantasies about procuring large and quick.

Also Read: Why People lose money into the stock market

Avoid Offline Trading:

If you are day trader but you are not in front of the trading screen then you will make a loss most of the time. Many people do such things and at the end they face loss and blame to the stock market. 

Example: 

If you are on your job or you are busy with your business then you should avoid day trading. For investors,  I will say that try to spare some time from your work or after your business hours for doing research on the company in which you want to invest. The concentration into the market is most important thing.

Do not try to time the market:

In the stock market many people do this mistake that they try to time the market i.e in the falling market people try to guess the bottom of the market & bottom of the stock which is very bad habit. You can never time the market. At what price you will buy the stock that will be best price for you because when you bought that stock it was lowest price according to you.

Book Profit at right time: 

Do not be greedy into the stock market if you are earning profit from your investment then try to book some profit. There are many other companies in which you can make new investment. Do not stuck with one company. 

Never catch falling knife:

Make one rule of your life if you want to earn profit from stock market i.e never  try to catch falling knife. Many traders or investors do this mistake.

Example: 

If one stock was trading around 500rs price level in Feb 2021 & panic selling came into that stock, after few days or week that stock came to the level of 250rs, In this situation many people try to buy that stock because they think that stock price came to the lowest levels but you never know that why that company share price came down suddenly & why there was correction in that stock market even you do not know at what price level this panic selling will be stopped. So avoid this kind of activity into the stock market.

 In Nutshell, if you will follow above mentioned few steps then you will learn the some this good about the stock market. Try to improve your stock market skills, avoid over confidence into the market, do not try to beat the market. 

Also Read: Why People lose money into the stock market